Why personal income tax rates need a revision
2 years, 11 months ago

Why personal income tax rates need a revision

India Today  

With the budget comes the hope and expectation of tax rate cuts, especially for the salaried class. Corporate tax rates are amongst the most competitive in the world with no room for further rationalisation—down to 15 per cent for new manufacturing units. But in terms of income tax rates, the salaried tax payers continue to be taxed at relatively higher rates. The government introduced a new income tax scheme in its budget last year, giving taxpayers the option of choosing between the old regime or the new regime. This has to end.” In terms of individual tax rates, India’s income tax rates are among the highest in the world.

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History of this topic

Tax action in the Union budget for 2025-26 could set the course for Viksit Bharat
3 weeks, 6 days ago

Tax action in the Union budget for 2025-26 could set the course for Viksit Bharat

Live Mint  

Balancing fiscal prudence with the need to provide a growth impetus has been a hallmark of our government over past Union budgets. Particularly praiseworthy is the government’s proposal to undertake a comprehensive review of the Income Tax Act of 1961 within the context of reviewing the entire direct and indirect taxation regime. On the indirect taxation side, the 2024-25 budget …

State of income tax in India: Rich pay more, middle class less
1 month, 1 week ago

State of income tax in India: Rich pay more, middle class less

Firstpost  

Income tax liability on salaried individuals earning less than Rs 20 lakh a year, broadly described as middle class, has fell sharply during the 10 years of Prime Minister Narendra Modi-led government. Also, the income tax liability of those earning more than Rs 50 lakh has increased 3.2 times or 282 per cent, from Rs 2.52 lakh crore in 2014, …

Income Tax Returns data shows that 5 times more people are earning over 50 lakhs per year since PM Modi came to power, pay over 75% of taxes
1 month, 1 week ago

Income Tax Returns data shows that 5 times more people are earning over 50 lakhs per year since PM Modi came to power, pay over 75% of taxes

Op India  

Over the course of last ten years, the number of income tax filers has increased by an astounding 120%, as per media reports. The data from income tax return filings shows that the number of people with yearly incomes over Rs 50 lakh surged five-fold from 1.85 lakh in 2013–14, to over 9.39 lakh in 2023–24. Furthermore, from Rs 2.52 …

Income tax share from below ₹10 lakh group shrinks over 10 years, high earners dominate
Trending News
1 month, 1 week ago

Income tax share from below ₹10 lakh group shrinks over 10 years, high earners dominate

Live Mint  

Data from the Income Tax Department reveals a shift in India’s tax landscape over the past decade, with the share of tax collected from individuals earning less than ₹10 lakh dropping from over 10% to 6.22%. Tax collection from this group has tripled, rising from ₹2.52 lakh crore in 2014 to ₹9.62 lakh crore in 2024, data showed. “Tax liability …

Can you expect major income tax changes in Budget 2025? Check details
1 month, 1 week ago

Can you expect major income tax changes in Budget 2025? Check details

India Today  

The Union Budget 2025-26 is set to usher in a new era of tax simplification in India, with the Finance Ministry working on comprehensive reforms to streamline the income tax system. The proposed reforms focus on three key areas: simplifying tax structures, expanding the tax base, and balancing revenue generation with taxpayer relief. SIMPLER TAX FILING Building on the success …

Major income tax reforms in pipeline, Budget 2025 to ease filing process: Sources
Trending News
1 month, 1 week ago

Major income tax reforms in pipeline, Budget 2025 to ease filing process: Sources

India Today  

February 2025 is poised to usher in a new era of tax simplicity in India, as the upcoming Union Budget 2025-26 aims to reform the Income Tax Act, making tax filing easier for citizens, according to sources. Sources in the Finance Ministry told India Today TV that a series of major reforms to the income tax system are in the …

It is time India started indexing tax slabs and exemptions with inflation
Trending News
1 month, 1 week ago

It is time India started indexing tax slabs and exemptions with inflation

Live Mint  

NEW DELHI : One of the big stories of the Indian economy has been the sharp increase in personal income tax collections. As the government’s revenue from personal income tax rises, it will likely face greater scrutiny and higher taxpayer expectations regarding the tax system's efficiency, transparency, stability, and fairness. The old tax regime evolved over several decades, allowing individuals …

Income Tax Filers Exceed 2.3 Lakh, with High Majority Being Businesspersons and Professionals
2 months ago

Income Tax Filers Exceed 2.3 Lakh, with High Majority Being Businesspersons and Professionals

Hindustan Times  

Number of taxpayers with over ₹1 crore of taxable income rose significantly in the assessment year 2023-24. The number of taxpayers with more than ₹1 crore of taxable income increased by more than five times, reaching nearly 2.3 lakh. This surge in income earners is attributed to the rise in the number of salaried individuals earning over ₹1 crore, with …

India's Tax Filers Surge Fivefold, With 52% of Salaried Individuals Reporting Income Over Rs 1 Crore
2 months ago

India's Tax Filers Surge Fivefold, With 52% of Salaried Individuals Reporting Income Over Rs 1 Crore

ABP News  

India's tax filers have seen a significant surge in recent years, with the number of individuals reporting taxable incomes exceeding Rs 1 crore surging fivefold in the assessment year 2023-24. This growth has been driven by both an increase in the total number of taxpayers and an increase in the number of individuals with taxable incomes exceeding Rs 1 crore.

Centre launches process to revamp income-tax regime
2 months, 2 weeks ago

Centre launches process to revamp income-tax regime

Hindustan Times  

NEW DELHI: The Union government on Monday formally launched the process to revamp the existing income-tax regime with four key objectives in mind – simplification of language, reduction of litigations, ease of compliance, and scrapping of obsolete provisions. “The goal is to make the Act concise, clear, and easy to understand, which will reduce disputes, litigation, and provide greater tax …

India's Tax Regime Set For A Major Upgrade, Govt Puts Income Tax Act 1961 Under Review; Check Key Reasons
4 months, 4 weeks ago

India's Tax Regime Set For A Major Upgrade, Govt Puts Income Tax Act 1961 Under Review; Check Key Reasons

News 18  

The government has announced a comprehensive review of the Income Tax Act to address several key issues. Announcing the decision during her Budget 2024 speech, Finance Minister Nirmala Sitharaman announced that it will undertake a comprehensive review of the Income Tax Act to make it easy to read. By making the Income Tax Act more user-friendly and efficient, the government …

Mixed reactions to revised Income Tax rates, deductions in Andhra
5 months ago

Mixed reactions to revised Income Tax rates, deductions in Andhra

New Indian Express  

GUNTUR: Finance Minister Nirmala Sitaraman’s announcements on Income Tax have evoked mixed feelings among the public. Under the new regime of the personal Income Tax rates, she announced that standard deduction for salaried employees has been hiked to Rs 75,000 from Rs 50,000. Explaining the significance of the changes to the standard deduction, Murthy Naidu, a financial analyst, said a …

The rationale for the tax proposals
5 months ago

The rationale for the tax proposals

The Hindu  

The 2024-25 Budget is not just an account of receipts and expenditures for the financial year; it also sets the stage for several years in terms of expectations. Budget 2024 |Middle class discontented, real estate sector applauds tax reforms Regarding the general proposals, two sets pique interest — first, those relating to capital markets and second, those relating to the …

Calculation: Will you pay more income tax or less after Budget 2024 changes?
5 months ago

Calculation: Will you pay more income tax or less after Budget 2024 changes?

Firstpost  

The government has introduced a simplified tax regime for the fiscal year 2024-25, aimed at streamlining the tax structure to make it more taxpayer friendly. As we move to higher income levels, for the range of Rs 1,500,000 to Rs 5,000,000, the tax rate is set at 30 per cent with an effective tax rate of 31.20 per cent. For …

Old vs proposed income tax slabs under new regime. What has changed?
5 months ago

Old vs proposed income tax slabs under new regime. What has changed?

Hindustan Times  

Union finance minister Nirmala Sitharaman on Tuesday proposed a new tax structure under the new regime. Budget 2024: Mobile phones, chargers to get cheaper; Nirmala Sitharaman proposes cut in customs duty The new tax slabs under the new income tax regime will be effective from April 1, 2024.. Proposed Tax Structure: Income up to ₹ 3,00,000: Nil 3,00,000: Nil ₹ …

Budget 2024: Income tax slabs changed, standard deduction increased. Read details
5 months ago

Budget 2024: Income tax slabs changed, standard deduction increased. Read details

Op India  

On Tuesday, Finance Minister Nirmala Sitharaman presented the Annual Financial Statement before the Lok Sabha. The Finance Minister has given relief to taxpayers who choose to opt for the New Tax regime as the tax slabs have been revised and the Standard deduction limit has been increased from Rs 50,000 to Rs 75,000. Personal Income Tax: The Union Finance Minister …

How middle class pays more taxes than corporates, and gets ignored too
5 months ago

How middle class pays more taxes than corporates, and gets ignored too

India Today  

Read Full Budget 2024 Coverage The middle class, the tax-paying population of India, stares at the face of the government every time the Budget day approaches. Revenue Receipts 2019-2020 2021-2022 2022-2023 2023-2024 2024-2025 Corporate Tax 556,876 712,037 825,834 922,675 1,042,830 Income Tax 492,654 696,243 833,260 1,022,325 1,156,000 Source: Government of India data The taxes were reduced to boost capital expenditure, …

Budget 2024: Will Nirmala Sitharaman bring cheer to middle-class with income tax changes?
5 months ago

Budget 2024: Will Nirmala Sitharaman bring cheer to middle-class with income tax changes?

Hindustan Times  

The Union Budget 2024 could provide Income Tax relief for low earners looms large amid rising prices in the country. Experts believe that a reduction in Income Tax could address economic challenges in the country as Finance Minister Nirmala Sitharaman is set to present the Union Budget for the fiscal year 2024-25 on July 23. This change would boost consumption, …

Reforming India's tax culture for better tax to GDP ratio
5 months, 1 week ago

Reforming India's tax culture for better tax to GDP ratio

Hindustan Times  

For India to achieve its economic goal of becoming a developed country by 2047, it must mobilise massive resources to build the nation. However, India's approach has been to levy high indirect taxes through multiple Goods and Services Tax slabs while offering significant exemptions to individual taxpayers. The current tax exemption policy for low-income earners, aimed at reducing the financial …

Budget may make some announcements to enable Global Minimum Tax
5 months, 1 week ago

Budget may make some announcements to enable Global Minimum Tax

Deccan Chronicle  

The global minimum tax set to take effect in 2025 will have legal and economic ramifications for multinational corporations with an annual global turnover exceeding €750 million. “India being a signatory of the Global Minimum Tax Agreement and the regime set to take effect in 2025, the government will have to bring some enabling provisions and mechanisms in the Budget. …

Union Budget 2024: Will Nirmala Sitharaman bring income tax relief for middle class?
5 months, 1 week ago

Union Budget 2024: Will Nirmala Sitharaman bring income tax relief for middle class?

Hindustan Times  

With the Union Budget 2024 scheduled to be presented on July 23, 2024 by Finance Minister Nirmala Sitharaman, income tax slabs are an important component that has been getting a lot of attention lately, with reports suggesting there may be potential tax cuts for boosting consumption in the economy. The current slabs for the new tax regime are as follows: …

Budget 2024: Which income categories can expect tax relief?
6 months ago

Budget 2024: Which income categories can expect tax relief?

India Today  

The government is considering a reduction in tax rates for specific categories of salaried individuals, aimed at boosting consumption, reported news agency Reuters. The reduction in tax rates could be part of the upcoming budget announcement in July by Finance Minister Nirmala Sitharaman, the report said, citing two government officials. Potential tax relief The anticipated tax relief could benefit individuals …

India’s tax-to-GDP ratio to hit a record high of 11.7% of GDP in 2024-25: Revenue Secretary
10 months, 2 weeks ago

India’s tax-to-GDP ratio to hit a record high of 11.7% of GDP in 2024-25: Revenue Secretary

The Hindu  

February 06, 2024 08:19 pm | Updated 09:05 pm IST - NEW DELHI India’s tax-to-GDP ratio is expected to hit a record high of 11.7% of GDP in 2024-25, led by an uptick in the more ‘equitable’ direct taxes, and the government will continue to simplify and rationalise the tax regime to reduce disputes, litigation and intrusive means of enforcement, …

Budget 2024: No change in direct taxes. What does it mean for India's middle class?
10 months, 3 weeks ago

Budget 2024: No change in direct taxes. What does it mean for India's middle class?

Hindustan Times  

Union finance minister Nirmala Sitharaman on Thursday said that the government won't propose any changes to taxation and will retain the same tax rates for direct taxes and indirect taxes including import duties. Finance Minister Nirmala Sitharaman chose not to increase, or decrease, income tax liability on the middle class. "Keeping with the convention, I do not propose to make …

Budget 2024: 6 key changes taxpayers want from FM Sitharaman
10 months, 3 weeks ago

Budget 2024: 6 key changes taxpayers want from FM Sitharaman

India Today  

Finance Minister Nirmala Sitharaman is set to present the Interim Budget 2024-25 on February 1, covering the initial three months of the next fiscal year. While hopes for a new 25 per cent high-income tax slab are slim, expectations include increased basic exemption, standard deduction, and higher limits for 80C & 80D," Ravi said. NPS deduction under new tax regime …

Explained: Why more Indians still prefer old income tax regime
1 year ago

Explained: Why more Indians still prefer old income tax regime

India Today  

The new income tax regime received a significant upgrade in the Union Budget 2023, but a survey suggests that more Indians still prefer the old regime. A recent survey conducted by Policybazaar.com suggests that Indians still prefer long-term investments, and subsequently, the old tax regime due to the exemptions they get under Section 80C, 80D, and others. The survey noted …

More Than 5 Crore Taxpayers Opt for New Tax Regime 2023
1 year, 4 months ago

More Than 5 Crore Taxpayers Opt for New Tax Regime 2023

News 18  

Finance Minister Nirmala Sitharaman announced income tax relief, especially for those with salaried incomes in the 2023-24 Budget. The new tax regime grants tax exemption for income between 0 to 3 lakh rupees. Individuals earning income ranging between Rs 3 to 6 lakh are taxed at a 5 per cent rate, while those between 6 to 9 lakh face a …

10 Income Tax Rules That Are Changing From April 1, 2023
1 year, 8 months ago

10 Income Tax Rules That Are Changing From April 1, 2023

News 18  

The income tax laws have undergone numerous changes, and they will take effect this fiscal year. Some of the main changes that will take effect on April 1, 2023, include raised tax rebate limits, changes to income tax slabs, and the elimination of the LTCG tax benefit on certain debt mutual funds. Let’s examine the changes:- 1) New income tax …

New tax regime, rules to roll out from Apr 1. Here’s what taxpayers need to know
1 year, 8 months ago

New tax regime, rules to roll out from Apr 1. Here’s what taxpayers need to know

Live Mint  

The tax rates which a taxpayer needs to pay on their income and income from other sources will be changing from April 1st, 2023. The updated income tax slab for the new tax regime will be as follows: - Above ₹15 lakh income, the tax rate would be 30% - Between ₹12 lakh to ₹15 lakh income, the tax rate …

Budget 2023: What are the changes in new tax regime? Expert explains
1 year, 10 months ago

Budget 2023: What are the changes in new tax regime? Expert explains

Hindustan Times  

Union finance minister Nirmala Sitharaman said the new tax system will be the default, with the old system remaining an option. Presenting the last full budget of the Narendra Modi government before the 2024 Lok Sabha election, Sitharaman raised the income tax rebate cap under the new tax system from ₹5 lakh to ₹7 lakh. Hindustan Times spoke to Abhishek …

New Tax System Less Complicated…Every Indian Should Make A Choice: FM to News18
1 year, 10 months ago

New Tax System Less Complicated…Every Indian Should Make A Choice: FM to News18

News 18  

Terming the new tax system “better" and “least complicated", Union Finance Minister Nirmala Sitharaman, speaking exclusively to Rahul Joshi, Group Editor-in-Chief, Network18, two days after she presented Budget 2023-24 in Parliament on February 1, said the government has not set a timeframe for the new regime. I believe at least 50% people will shift": FM #NirmalaSitharaman on New Tax Regime …

Explained: How Union Budget has given India’s middle class much to rejoice
1 year, 10 months ago

Explained: How Union Budget has given India’s middle class much to rejoice

Firstpost  

‘Amrit Kaal’s first Budget’ has brought the much-awaited income tax reliefs for the country’s salaried middle class. In a much-awaited respite, the government increased the income tax rebate limit from Rs 5 lakh to Rs 7 lakh in the new tax regime. Here are the new tax rates under the new tax regime: For Rs 0-3 lakh income – nil …

Budget 2023: How the new tax regime is different from the existing one
1 year, 10 months ago

Budget 2023: How the new tax regime is different from the existing one

Hindustan Times  

A look at the old and new income tax slabs. Those individuals with income between ₹5 lakh and ₹7 lakh had to pay 10 per cent tax. The tax payers earning between ₹7.5 lakh and ₹10 lakh had to pay 15 per cent income tax. Those earning between ₹3 lakh and ₹6 lakh will have to pay 5 per cent …

Budget 2023: 5 major announcements on personal income tax
1 year, 10 months ago

Budget 2023: 5 major announcements on personal income tax

Hindustan Times  

In a huge relief to middle- and salaried-class people, Union finance minister Nirmala Sitharaman on Wednesday announced five major changes in personal income tax. Presenting the Union Budget for FY 2023-24, Sitharaman said that the proposals regarding personal income tax will primarily benefit the country's “hard-working middle class”. 2) In 2020, Sitharaman had introduced a new personal tax regime with …

Where does India stand in the world in comparison of individual tax rates?
1 year, 10 months ago

Where does India stand in the world in comparison of individual tax rates?

Live Mint  

With the Union Budget just a few days away, the expectations are high around significant changes in individual taxes. Indian scenario: India follows the progressive tax slab rate system for individual taxpayers, where the tax rate is determined based on varied factors: a) Age groups: Normal taxpayers, Senior citizens and Super senior citizens where senior people enjoy a higher basic …

Centre mulls cutting tax rates in new income tax regime
2 years, 3 months ago

Centre mulls cutting tax rates in new income tax regime

Live Mint  

BENGALURU/NEW DELHI : The finance ministry is working to sweeten the two-year-old exemptions-free personal income tax regime by offering lower tax rates, a government official said, after the new system failed to click with taxpayers. “We have not seen much traction for the new personal income tax regime without exemptions so far. Similarly, the Centre is exploring ways to do …

ITR 2021-22: 41% income taxpayers yet to file returns, 10% facing tech glitches
2 years, 4 months ago

ITR 2021-22: 41% income taxpayers yet to file returns, 10% facing tech glitches

India TV News  

ITR 2021-22: As the deadline to file Income tax returns inches closer, 41 per cent of Indians who qualify to file the return are yet to file their papers for FY 2021-22, 22 per cent say it is difficult to file it by the July 31 deadline, and about 10 per cent were facing technical glitches, a new report showed …

Key Income Tax Highlights
2 years, 10 months ago

Key Income Tax Highlights

Live Mint  

Taxpayers were expecting changes to the Income Tax Slabs and Rates to be announced in the Budget. Taxpayers who inadvertently made mistakes in their tax return have two years from the end of the relevant AY to file a revised return by paying taxes. Income Tax is still in effect, there are no changes to the income tax slabs or …

What are the new and old income tax regimes?
2 years, 10 months ago

What are the new and old income tax regimes?

Business Standard  

Announcement on income tax is the most awaited part of the Union budget. Income between Rs 2.5 lakh to Rs 5 lakh is taxed at the rate of 5 per cent under the old as well as the new tax regime. Personal income from Rs 5 lakh to Rs 7.5 lakh is taxed at a rate of 20% under the …

Budget 2022: Why didn't government change personal income tax rates? FM Sitharaman answers
2 years, 10 months ago

Budget 2022: Why didn't government change personal income tax rates? FM Sitharaman answers

India TV News  

Highlights Sitharaman did not raise the standard deduction Concessional rate of 15 per cent has been extended by one year for newly incorporated units The basic personal tax exemption limit in the personal income tax was last revised in 2014 There was no change in the personal income tax slabs in the Union Budget 2022-23 unveiled on Tuesday by Finance …

Budget 2022: Replacing Income Tax with Expenditure Tax is the Blockbuster Reform India Needs
2 years, 11 months ago

Budget 2022: Replacing Income Tax with Expenditure Tax is the Blockbuster Reform India Needs

News 18  

Every stimulus package to boost the economy has its own burdening impact on the country’s fiscal position. If personal income tax is done away with, about 6.32 crore people will have the freedom from the burden of submitting annual Income Tax Returns. The various organisations complying with TDS will also be free from the burden of collecting, remitting and submitting …

Goods and Services Tax as an unfinished agenda
3 years ago

Goods and Services Tax as an unfinished agenda

The Hindu  

GST, or Goods and Services Tax, an institutional tax innovation intensively marketed in many countries by the International Monetary Fund and the World Bank, was wrapped in a “one nation one tax” package, and was accepted by India on the midnight of July 1, 2017. While the States have forgone a substantial part of their own tax revenue, they were …

ITR filing for financial year 2020-21
3 years, 1 month ago

ITR filing for financial year 2020-21

India Today  

The Income Tax Return is an annual ritual for the citizens of India and the other taxpayers of the country. The majority of taxpayers must have filed an Income Tax Return whereas a certain ratio of them is yet to file the returns. The deadline to file an income tax return for FY 2020-2021 is for three months to December …

A taxpayer-friendly administration could get friendlier still
4 years, 4 months ago

A taxpayer-friendly administration could get friendlier still

Live Mint  

Over the past few years, the government has embarked on a mission of major tax reforms, with the focus on reduction in tax rates, simplification of tax laws, efficiency, transparency and ease of paying taxes. Industry is hopeful that not only would the tax department continue to play a critical role in the growth of the nation, but will also …

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